Accounting questions and answers

Accounting Questions and Answers

If you are preparing for an accounting aptitude test or even a job interview, these accounting questions and answers will help you master the principles of accounting. This test covers accounting past questions from WAEC, JAMB, Post UTME exams and many more.

936.

The effect of overstating revenue expenditure in the profit and loss account is that the

A.

Opening stock will be increased

B.

Net profit will be understand

C.

Net profit will be overstead

D.

Opening stock will be decreased

Correct answer is B

As a general rule, an increase in any type of business expense lowers profit. overstating expenditure would decrease or understate the net profit

 

939.

Which of the following is the capital reserve of a company?

A.

Accumulated depreciation

B.

Retained profit

C.

Share premium

D.

Loss on forfeited shares

Correct answer is B

Capital reserve is made out of capital profits earned due to the sale of fixed assets at a price greater than its cost or profit on the reissue of forfeited shares. So Capital reserve is Created when there is capital profit i.e. profit on sale of assets or upward revaluation of assets. Retained capital is a capital reserve.